About This Chapter
Fundamentals of Real Estate Financing - Chapter Summary
Review the many types of financing available in real estate today, including conventional, FHA, VA, and seller financing. Practice the terminology you need to know to understand real estate finance documents, brush up on the laws and regulations that apply to this field, and study mortgage fraud and trust accounts. When you've finished this chapter, you will be able to:
- Name requirements for the major types of real estate financing
- Detail calculations used to determine home buyer qualifications
- Explain the importance of HUD-1 settlement statements
- List the components of a good faith estimate
- Give an overview of RESPA and Regulation X
- Discuss lending issues in the real estate market
- Share how trust accounts are managed
Master the world of real estate financing with the clear instruction in each lesson. Be sure to check your knowledge using the self-assessment quizzes at the end of each lesson. Our subject matter experts are available for questions if you have trouble with any of these concepts.
1. Conventional Financing: Definition & Requirements
In this lesson we will define and describe the general requirements of conventional financing. We will also explore the concepts and application of loan-to-value ratios as well as private mortgage insurance.
2. What is FHA Financing? - Definition & Requirements
Homebuyers short on cash with a few dings on their credit report may qualify for FHA financing. In this lesson, you'll learn about FHA financing and its requirements. You'll also have a chance to test your knowledge with a short quiz.
3. Seller Financing: Definition, Method & Effects
In this lesson we will define seller financing and how it works. We will also address some of advantages and disadvantages of this creative financing method.
4. VA Financing: Eligibility & Requirements
The VA home loan is a financing option available to those who serve or have served in the United States Armed Forces. This lesson outlines who is eligible for a Department of Veterans Affairs mortgage and the VA's unique requirements.
5. Home Buyer Qualification Calculations
In this lesson we will look at some of the financial ratios used to determine how much of a monthly mortgage payment a buyer can qualify for, without wasting time on unaffordable properties.
6. HUD-1 Settlement Statement: Definition & Importance
What is a HUD form and why is it required in just about every real estate transaction? In this lesson, you'll learn what this form is, why it's important and an explanation of the important sections. You'll also learn about how closing costs are calculated for both buyers and sellers.
7. Terminology for Real Estate Finance Documents
Terminology related to financial documents in real estate can be intimidating. In this lesson, we will define some of the most common financial terms used in real estate and discuss how they impact the cost of borrowing.
8. What is a Good Faith Estimate? - Definition & Components
A Good Faith Estimate helps borrowers make informed decisions when applying for a mortgage loan. Learn the ins and outs of a Good Faith Estimate (GFE) and how it works to bring transparency to real estate transactions.
9. RESPA & Regulation X: Definition & Overview
Home buyers and anyone seeking real estate financing for residential property are provided with a number of benefits under RESPA and Regulation X. In this lesson we will look at the required disclosures and consumer protections in these laws.
10. Lending Issues in the Real Estate Market
Since the 2007-2008 housing market collapse, two of the defining issues in real estate lending have been tightening up of lending standards and decreasing interest rates for mortgage loans. In this lesson, we will discuss these issues and how they affect the current housing market.
11. What is Mortgage Fraud? Types & Examples
Every year home buyers and real estate professionals alike lie or commit crimes that involve real estate mortgages. Mortgage fraud can take a number of forms, although there are consumer protections in place to minimize incidents and their impact.
12. Trust Accounts: Definition & Management
Real estate salespersons and brokers routinely receive large sums of money from clients for use in real estate transactions. In this lesson, you'll learn about trust accounts, including what they are, what they are used for, and how to manage them.
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Other chapters within the Alabama Real Estate Broker Pre-License Exam: Study Guide & Practice course
- Alabama Real Estate Licensure
- Alabama Real Estate Law & Statutory Requirements
- Alabama Real Estate Violations & Disciplinary Actions
- Understanding Agency Relationships & Agreements in Real Estate
- Ethical Conduct & Professional Duties in Real Estate
- Fundamentals of Business Planning
- Human Resource Management for Real Estate
- Real Estate Licensee Training & Supervision
- Real Estate Sales Contracts for Buyers & Sellers
- Property Disclosures in Real Estate
- Closing & Settlement Real Estate Transactions
- Overview of Real Estate Negotiation
- Risk Management for Real Estate
- Advertising Laws in Real Estate
- Valuation of Real Property
- Overview of Property Management
- Commercial Real Estate
- New Construction Real Estate
- Alabama Real Estate Broker Pre-License Exam Flashcards